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1 Addendum No. 1, ARLW February 10, 2017 To All Offerers: RFP ARLW FMLA Administration (3 rd Party) of 9,300 Employees, 5-Year Period Addendum No. 1 The following constitutes Addendum No. 1 to RFP ARLW, FMLA Administration (3 rd Party) of 9,300 Employees, 5-Year Period. This Addendum must be acknowledged by inserting the date of the Addendum on the Acknowledgement of Addenda Form (attached) to be submitted with your Proposal. Failure to do so may render your proposal as nonresponsive. Questions, Answers, and Clarifications issued with this Addendum are hereby incorporated by reference and made part of the Terms and Conditions of this project. A. General 1. Due Date for Questions is unchanged as Tuesday, February 14, 2017 at 4:30 PM. 2. Proposal Due-Date/Time is unchanged as Tuesday, February 28, 2017 at 4:30 PM. 3. Attached, please find a 1-page Acknowledgement of Addenda Form. Please complete this form to acknowledge this Addendum, and any future Addenda that may be issued to this RFP, and include the completed form with your Proposal submission. B. Questions/Responses - SEPTA s Response (R), to the following Bidder submitted Questions (Q), are hereby incorporated into the solicitation, and into any resulting Award Statement of Work.: 1. Q. Will not being a Disadvantaged Business Enterprise (DBE) and will not subcontracting with a DBE disqualify us? R: Be advised SEPTA has removed the DBE Goal for this project. All references in the Request for Proposal of an established DBE Goal of 7% are hereby removed. Please replace Attachment 6(pgs 52-66, dated 0916) of the RFP with the attached REVISED Attachment 6(pgs 52-66), dated **** End Addendum **** Page 1 of 1
2 ACKNOWLEDGEMENT OF ADDENDA FORM This form shall be completed to acknowledge all addenda by inserting the dates next to the appropriate addenda number and including this form with your Technical Proposal submittal. Failure to properly acknowledge the addenda, as set forth below, may cause your proposal to be considered non-responsive to the solicitation. The undersigned acknowledges receipt of the following addenda to this RFP No ARLW and certifies that all changes have been taken into account in the Scope and Price of our proposal. ADDENDUM NO. 1 ADDENDUM NO. 2 ADDENDUM NO. 3 ADDENDUM NO. 4 ADDENDUM NO. 5 ADDENDUM NO. 6 DATED: DATED: DATED: DATED: DATED: DATED: Proposer Name: Street Address: City, State Zip: Signature of Authorized Signer: Print/Type Name: Phone Number :
3 Attachment 6 Disadvantaged Business Enterprise (DBE) Requirements 52
4 REQUEST FOR PROPOSAL WITHOUT DBE GOALS Disadvantaged Business Enterprise (DBE) Participation solicitation and contract provisions pursuant to U. S. Department of Transportation regulations (Title 49 CFR part 26), FTA Circular A, and SEPTA Policy are provided in this Section. A. DBE CONTRACT GOALS In connection with this solicitation and any resulting contract, SEPTA has not established a goal for Disadvantaged Business Enterprise (DBE) participation. This is in accordance with the DBE Regulations at 49 CFR part 26, which require SEPTA to attempt to use race-neutral means of obtaining DBE participation whenever possible. B. DEFINITIONS 1. "Affiliation" has the same meaning the term has in the Small Business Administration regulations, 13 CFR part 121: (a) Except as otherwise provided in 13 CFR part 121, concerns are affiliates of each other when, either directly or indirectly: (1) one concern controls or has the power to control the other; or (2) a third party or parties controls or has the power to control both; or (3) an identity of interest between or among parties exists such that affiliation may be found. (b) In determining whether affiliation exists, it is necessary to consider all appropriate factors, including common ownership, common management, and contractual relationships. Affiliates must be considered together in determining whether a concern meets small business size criteria and the statutory cap on the participation of firms in the DBE program. 2. Contract Sum means total contract price, including any change orders and amendments. 53
5 3. "Disadvantaged Business Enterprise" or "DBE" means a for-profit small business concern (a) that is at least fifty-one percent (51%) owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which fifty-one percent (51%) of the stock is owned by one or more such individual(s); and (b) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it and is certified as such by SEPTA s DBE Program Office or by Pennsylvania s Unified Certification Program (PAUCP). 4. "Joint Venture" means an association of a DBE firm and one or more other firms to carry out a single, for-profit business enterprise, for which purpose they combine their property, capital, efforts, skills and knowledge, and in which the DBE is responsible for a distinct clearly defined portion of the work to be performed by the joint venture and whose share in the capital contribution, control, management, risks and profits of the joint venture are commensurate with its ownership interest (see paragraph D.5. below). 5. "Small Business Concern" means a small business concern as defined pursuant to Section 3 of the Small Business Act and Small Business Administration regulations implementing it (13 CFR part 121), that also does not exceed the following size determinations: (a) to be an eligible DBE, a firm (including its affiliates) must be an existing for-profit small business, as defined by Small Business Administration (SBA) standards found in 13 CFR part 121 appropriate to the type(s) of work the firm seeks to perform in DOT-assisted contracts. (b) In addition to the requirements of (a) above, a firm must also meet the annual gross receipts requirements defined in SBA regulations 13 CFR "Socially and Economically Disadvantaged Individuals" means any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who is: (a) Any individual which SEPTA finds to be a socially and economically disadvantaged individual on a case-by-case basis. (b) Any individual in the following groups, members of which are rebuttably presumed to be socially and economically disadvantaged: 54
6 (i) "Black Americans" which includes persons having origins in any of the Black racial groups of Africa; (ii) "Hispanic Americans" which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; (iii) "Native Americans" which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; (iv) "Asian-Pacific Americans" which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U. S. Trust Territories of the Pacific Islands (Republic of Palau), the Commonwealth of the Northern Marianas Islands, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of Micronesia, or Hong Kong; (v) "Subcontinent Asian Americans" which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka; (vi) Women; (vii) any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective. C. SUBMISSION REQUIREMENTS 1. In connection with this solicitation and any resulting contract, SEPTA has not established goals for Disadvantaged Business Enterprise (DBE) participation. This is in accordance with the DBE Regulations at 49 CRF 26.39, 26.51, which require SEPTA to attempt to use race-neutral means of obtaining DBE participation whenever possible. If your firm utilizes a certified DBE subconsultant/supplier, a dually executed DBE Participation Schedule which is attached must be submitted for each DBE subconsultant/supplier, with the Technical Proposal and include the following: (a) The name and address of the DBE firm that will participate in the Contract. (b) A description of the work that the DBE will perform (c) The percent of the participation of the DBE firm participating 55
7 The Proposer is required to submit a properly executed DBE Participation Schedule for each DBE subconsultant/supplier identified to participate in the Contract. Within forty-eight (48) hours from notification by SEPTA< Proposer is required to submit a Commitment/Confirmation document for each DBE firm scheduled to participate. The Commitment/Confirmation document represents: (a) The proposer s commitment to use a DBE subconsultant/supplier whose participation it submitted to meet a contract goal; and (b) The DBE subconsultant/supplier s confirmation that it is participating in the Contract as provided in the Proposer s commitment. (c) If the contract goal is not met, Proposer must provide evidence of its Good Faith Efforts in accordance with Paragraph E. Determination of DBE Responsibility. In accordance with 49 CFR (Fostering Small Business Participation), the Proposer is also required to identify all other subconsultants/suppliers scheduled to participate in the Contract by submitting the attached Non-DBE Participation Schedule with their Technical Proposal. Any questions regarding DBE and or SBE Participation should be directed to SEPTA s DBE Program Office at (215) The requirements of this section also apply to DBE Proposers for prime contracts. In determining whether a DBE Proposer for a prime contract has met a Contract goal, the work the DBE has committed to perform with its own forces as well as the work it has committed to be performed by DBE subconsultants and DBE suppliers will be counted. 3. SEPTA's DBE Program Office will provide upon request SEPTA's DBE Directory. The DBE Directory is revised on a continual basis; i.e., at least weekly, and identifies all firms eligible to participate as DBEs in SEPTA's program. Additionally, interested persons can obtain access to a state-wide combined directory through SEPTA s membership in the Pennsylvania Unified Certification Program (PAUCP) at These DBE directories list the firm s name, address, phone number, fax number, address and the types of work the firm has been certified to perform as a DBE. 56
8 D. DETERMINATION OF PERCENTAGE OF DBE PARTICIPATION DBE participation shall be credited toward achieving the DBE Goal as follows: 1. When a DBE participates in a contract, only the value of the work actually performed by the DBE will be counted toward DBE goals. 2. SEPTA will count the entire amount of that portion of a construction contract (or other contract covered by paragraph D.3. below) that is performed by the DBE's own forces, including the cost of supplies and materials obtained by the DBE for the work of the contract, and supplies purchased or equipment leased by the DBE (except supplies and equipment the DBE subconsultant purchases or leases from the prime contractor or its affiliates). 3. SEPTA will count the entire amount of fees or commissions charged by a DBE firm for providing a bona fide service, such as professional, technical, consultant, or managerial services, or for providing bonds or insurance specifically required for the performance of the contract, toward DBE goals, provided SEPTA determines the fee to be reasonable and not excessive as compared with fees customarily allowed for similar services. 4. When a DBE subcontracts part of the work of its contract to another firm, the value of the subcontracted work may be counted toward DBE goals only if the DBE's subconsultant is itself a DBE. Work that a DBE subcontracts to a non-dbe firm does not count toward DBE goals. 5. When a DBE performs as a participant in a joint venture, SEPTA will count a portion of the total value of the contract equal to the distinct, clearly defined portion of the work of the contract that the DBE performs with its own forces toward DBE goals. 6. SEPTA will count expenditures to a DBE contractor toward DBE goals only if the DBE is performing a commercially useful function on that contract, as determined by SEPTA's DBE Program Office. (a) A DBE is considered to perform a commercially useful function when it is responsible for execution of a specific scope of work in a contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. To perform a commercially useful function, the DBE must also be 57
9 responsible, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity when ordering the material, and installing (where applicable) and paying for the material itself. To determine whether a DBE is performing a commercially useful function, SEPTA will evaluate the amount of work subcontracted; industry practices; whether the amount the firm is to be paid under the contract is commensurate with the work it is actually performing; and the DBE credit claimed for its performance of the work and other relevant factors. (b) A DBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, SEPTA will examine similar transactions, particularly those in which DBEs do not participate. (c) If a DBE does not perform or exercise responsibility for at least 30 percent of the total cost of its contract with its own work force, or the DBE subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of work involved, SEPTA will presume that the DBE is not performing a commercially useful function. (d) When a DBE is presumed not to be performing a commercially useful function, SEPTA will accept evidence from the DBE or prime contractor to rebut this presumption. Evidence from independent sources, such as trade journals or independent studies by consultants, is particular desirable in such circumstances. 7. SEPTA will use the following factors in determining whether a DBE trucking company is performing a commercially useful function: (a) The DBE must be responsible for the management and supervision of the entire trucking operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting DBE goals. (b) The DBE must itself own and operate at least one fully licensed, insured, and operational truck used on the Contract. 58
10 (c) The DBE receives credit for the total value of the transportation services it provides on the Contract using trucks it owns, insures, and operates using drivers it employs. (d) The DBE may lease trucks from another DBE firm, including an owner-operator who is certified as a DBE. The DBE who leases trucks from another DBE receives credit for the total value of the transportation services the lessee DBE provides on the Contract. (e) The DBE may also lease trucks from a non-dbe firm, including an owneroperator. The DBE who leases trucks from a non-dbe is entitled to credit for the total value of transportation services provided by non-dbe lessees not to exceed the value of transportation services provided by DBE-owned trucks on the contract. The DBE does not receive credit for the total value of the transportation services provided by the lessee, since these services are not provided by a DBE. (f) For purposes of this paragraph D.7., a lease must indicate that the DBE has exclusive use of and control over the truck. This does not preclude the leased truck from working for others during the term of the lease with the consent of the DBE, so long as the lease gives the DBE absolute priority for use of the leased truck. Leased trucks must display the name and identification number of the DBE. 8. SEPTA will count expenditures with DBEs for materials or supplies toward DBE goals as provided in the following: (a) If the materials or supplies are obtained from a DBE manufacturer, count 100% of the cost of the materials and supplies toward DBE goals. For purposes of this section, a "manufacturer" is a firm that operates or maintains a factory or establishment that produces, on the premises, the materials, supplies, articles, or equipment required under the Contract and of the general character described by the Specifications. (b) If the materials or supplies are purchased from a DBE Regular Dealer count 60% of the cost of the materials and supplies toward DBE goals. For purposes of this section, a "regular dealer" is a firm that owns, operates, or maintains a store, warehouse, or other establishment in which the materials, supplies, articles or equipment of the general character described by the Specifications and required under the Contract are brought, kept in stock, and regularly sold to the public in the 59
11 usual course of business. To be a regular dealer, the firm must be an established, regular business that engages, as its principal business and under its own name, in the purchase and sale or lease of the products in question. A person may be a regular dealer in such bulk items as petroleum products, steel, cement, gravel, stone, or asphalt without owning, operating, or maintaining a place of business as previously provided if the person both owns and operates distribution equipment. Any supplementing of regular dealers' own distribution equipment shall be by a long-term lease and not on an ad hoc or contract-by-contract basis. Packagers, brokers, manufacturers' representatives, or other persons who arrange or expedite transactions are not regular dealers within the meaning of this paragraph. (c) With respect to materials or supplies purchased from a DBE which is neither a manufacturer nor a regular dealer, SEPTA will only count the entire amount of fees or commissions charged for assistance in the procurement of the materials and supplies, or fees or transportation charges for the delivery of materials or supplies required on a job site, toward DBE goals, provided SEPTA determines the fees to be reasonable and not excessive as compared with fees customarily allowed for similar services. No portion of the cost of the materials and supplies themselves will be counted towards DBE goals. 9. SEPTA will not count the participation of a DBE subconsultant toward the prime contractor's DBE achievements until the amount being counted toward the goal has been paid to the DBE. E. DBE MODIFICATION(S) OR SUBSTITUTION(S) 1. If after award a DBE subconsultant included on the DBE Participation Schedule submitted to SEPTA, is terminated, or fails to complete its work on the Contract for any reason, SEPTA must be notified within 48 hours. 2. If after award of the Contract, a DBE subconsultant is terminated, or fails to complete its work on the Contract for any reason, SEPTA will require the prime contractor to make good faith efforts to find another DBE subconsultant to substitute for the original DBE. These good faith efforts shall be directed at finding another DBE to perform at least the same dollar value of work under the Contract as the DBE that was terminated, to the extent needed to meet the Contract goal established by SEPTA. 60
12 F. REPORTING AND RECORDKEEPING REQUIREMENTS To ensure that all obligations under the contracts awarded to DBEs are met, SEPTA s DBE Program Office shall monitor the Contractor s performance during the life of the Contract. 1. Upon execution of its SEPTA contract, the Contractor shall enter into written subcontract agreement(s) with the DBE(s) listed in its DBE Participation Schedule. Copies of the Contractor s executed subcontract agreement(s) with DBEs shall be provided to SEPTA s DBE Program Office by the Contractor immediately upon execution. 2. The Contractor shall submit a work schedule outlining when the DBE subconsultant(s) will commence and complete work on the project, at such times as prescribed by SEPTA s DBE Program Office 3. The Contractor shall keep a regular accounting of actual expenditures of funds made under all contract an subcontract agreements with DBEs; specifically, an accounting of the actual amount of DBE expenditures for each contract. The Contractor shall submit a DBE Invoice Payment Report to SEPTA with each invoice or request for payment from SEPTA. 4. The Contractor shall submit monthly reports of actual contract expenditures to DBE s by the Contractor. This information must be submitted electronically via SEPTA s website ( ). 5. The Contractor and subconsultant(s) shall permit access to their books, records and accounts by SEPTA (or its designated representative) or the Federal Transit Administration (FTA) for the purpose of investigation to ascertain compliance with these specified requirements. Such records shall be maintained by the Contractor in a fashion which is readily assessable to SEPTA and/or the FTA for a minimum of five (5) years following completion of this Contract. 6. With regard to any claim or dispute with respect to payment of a subconsultant at any tier, Contractor expressly agrees to defend, indemnify and hold SEPTA harmless in the event any suit is brought on account of a dispute between any of the parties including but not limited to subconsultant(s), supplier(s) and material men and in particular, Contractor shall assume the defense affirmatively at its sole cost whenever such suit is brought in any jurisdiction. 61
13 G. FTA DBE AUDIT REQUIREMENT DBE INVOICE PAYMENT REPORT The Contractor shall keep a regular accounting of actual expenditures of funds made under all contract and subcontract agreements with DBEs, specifically, an accounting of the actual amount of DBE expenditures for each contract. H. MISCELLANEOUS The Contractor is encouraged to utilize the services of financial institutions owned and controlled by socially and economically disadvantaged individuals as defined at 49 CFR part [END OF PAGE] 62
14 REQUEST FOR PROPOSAL DISADVANTAGED BUSINESS ENTERPRISE (DBE) PARTICIPATION SCHEDULE As specified in the DBE Participation Section included in the Proposal Documents, the Proposer shall furnish to SEPTA s satisfaction the details of disadvantaged business enterprise participation. NOTE: Firms must be Pennsylvania Unified Certification Program (PA UCP) certified prior to being listed on a DBE Participation Schedule. PROJECT NAME: PROPOSAL NO.: TABLE I. ALL WORK/SERVICES TO BE PERFORMED BY THE DBE FIRM 1 NAME OF DBE FIRM CONTACT PERSON, BUSINESS ADDRESS, TELEPHONE NUMBER Firm Name: Contact: Address: Tele. No.: (Type or Print all information) 2 DESCRIPTION OF WORK TO BE PERFORMED 1 TABLE II. MATERIAL/SUPPLIES TO BE PURCHASED FROM REGULAR DEALERS 1 NAME OF DBE FIRM CONTACT PERSON, BUSINESS ADDRESS, TELEPHONE NUMBER 2 DESCRIPTION OF MATERIAL TO BE SUPPLIED 1 3 TOTAL DBE AGREED PRICE TO BE CREDITED TO DBE GOAL 2 3 TOTAL DBE AGREED PRICE TO BE CREDITED TO DBE GOAL 2 (Total Price x.6) Firm Name: Total Price: Contact: X.6 Address: Amount Tele. No.: Credited to (Type or Print all information) DBE Goal: Name of Bidder: Tele. No.: ( ) (type or print) Contact: Title: Signature: (type or print) A FULLY COMPLETED DBE PARTICIPATION SCHEDULE, FOR EACH DBE FIRM DESIGNATED TO PARTICIPATE, IS REQUIRED TO BE SUBMITTED WITH THE TECHNICAL PROPOSAL. FAILURE OF THE PROPOSER TO SUBMIT FULLY COMPLETED DBE PARTICIPATION SCHEDULE(S) WITH THEIR TECHNICAL PROPOSAL MAY RESULT IN THE REJECTION OF THEIR PROPOSAL. PROPOSER MUST SIGN AND DATE ABOVE. PROPOSER WILL BE REQUIRED TO PROVIDE A COMMITMENT/CONFIRMATION DOCUMENT FOR EACH DESIGNATED DBE FIRM UPON REQUEST FROM SEPTA. Proposers are hereby notified that the information contained herein will be verified with the designated DBE firm. Additionally, if and when the award of a contract is made, the DBE firm listed herein will be simultaneously notified of the award. SEPTA reserves the right to waive informalities herein in its sole reasonable discretion. 1 2 See Section D. Determination of Percentage of DBE Participation for discussion of types of participation and credit given toward achieving the DBE Goal. This must be expressed as a percentage of the Proposer s total maximum price to SEPTA. 63 Date:
15 64
16 SEPTA NON DBE PARTICIPATION SCHEDULE (Request for Proposals) As specified in the DBE Participation Section included in the Solicitation Documents, the Proposer must furnish to SEPTA the details of non DBE subconsultant participation. PROJECT NAME: RFP NO.: 1. WORK/SERVICES TO BE PERFORMED BY SUBCONSULTANTS 2. MATERIAL/SUPPLIES TO BE PURCHASED FROM SUPPLIERS NAME OF FIRM CONTACT PERSON, BUSINESS ADDRESS, TELEPHONE NUMBER DESCRIPTION OF WORK/SERVICES TO BE PERFORMED / MATERIAL TO BE SUPPLIED TOTAL PARTICIPATION Firm Name: Contact: Address: Tele. No.: % Firm Name: Contact: Address: Tele. No.: % Firm Name: Contact: Address: Tele. No.: % Firm Name: Contact: Address: Tele. No.: % Firm Name: Contact: Address: Tele. No.: (Type or Print all information) % Name of Proposer: Tele. No.: ( ) (type or print) Contact: Signature: (type or print) 65 Title: Date:
17 MUST BE PROVIDED ON BIDDER S OFFICIAL LETTERHEAD RE: DBE PARTICIPATION - COMMITMENT/CONFIRMATION SEPTA Sealed Bid No. Project Name: <Bidder> is committed to contracting with <DBE Firm> for participation on the SEPTA solicitation referenced above. <DBE Firm> is scheduled to provide the following services and/or materials/supplies: <Provide a Detailed Description of the Services and/or Materials/Supplies* to be furnished by the named DBE Firm>. For approximately $<$$,$$$>, or xx% of the total contract. (*60% of the total agreed price for DBE suppliers will be credited towards the DBE goal) Bidder s Representative Name/Title (please type or print) Signature Date DBE Firm s Representative Name/Title (please type or print) Signature Date 66
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